Venture Capital News Highlights of 2024, by Month, trends, sector focus and startups funding
January 2024
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Funding Trends: The year kicked off with a somewhat subdued venture capital scene, with global startup funding reaching close to $22 billion, slightly below the monthly average for 2023. This was indicative of a market still adjusting from the previous year’s fluctuations. The anticipation for a potential IPO market rebound was a hot topic among investors, with many hopeful for a more active market if public markets showed strength.
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Sector Focus: AI continued to be a focal point, capturing a significant portion of the investment, but sectors like financial services, healthcare, and energy also saw robust funding in Europe.
February 2024
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Funding Growth: Global venture capital funding reached $21.5 billion, maintaining a flat trajectory from January but showing a slight increase from February of the previous year. AI companies particularly stood out, securing $4.7 billion, which represented over a fifth of all venture funding for the month.
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Notable Deals: A large language foundation model company raised a $1 billion Series B at a $2.5 billion valuation, showcasing the continued belief in AI’s potential.
March 2024
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Market Sentiment: The venture capital market was still seeking a new floor, with many VCs optimistic about the year ahead but cautious due to ongoing adjustments from the previous years’ high valuations. There was a noted shift towards more strategic investments.
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Corporate Venture Capital: An EY pulse survey revealed that 93% of CEOs planned to either increase or maintain their investment in corporate venture capital funds, potentially signaling an increase in M&A activities for liquidity.
April 2024
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Investment Analysis: The mixed state of startup funding was evident, with the first quarter being one of the lowest since 2018. However, some sectors like AI and financial services in Europe continued to attract significant investment.
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Venture Capital Insights: Crunchbase data highlighted that North America, despite being the largest market for venture capital, saw subdued funding, echoing global trends.
May 2024
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No specific data, but the general trend of AI dominance in venture funding continued, alongside a cautious approach to new investments due to lingering economic uncertainties.
June 2024
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Newsletters and Insights: The top venture capital newsletters for 2024 were listed, suggesting a focus on job opportunities, funding resources, and industry news, reflecting a year where knowledge sharing was pivotal.
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Market Projections: Total capital raised in the US VC market was projected to reach $264.5 billion, indicating optimism despite challenges.
July 2024
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Funding Adjustments: July saw adjustments with a significant addition to funding totals due to a $5 billion round announced by Waymo, adjusting the month’s figures to $28.8 billion.
August 2024
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Funding Downturn: August recorded the lowest monthly funding in 2024 at $18 billion, a 36% decrease from July and down 23% from August 2023. This was indicative of a continued slowdown in venture activities.
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AI Sector: Despite the overall downturn, AI-related companies managed to secure $4.3 billion, showing resilience and investor interest in this sector.
September 2024
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Continued Slump: The third quarter saw global venture funding at $66.5 billion, highlighting a persistent slump with a 16% drop from the previous quarter and 15% from the previous year.
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AI’s Influence: Despite the downturn, AI startups captured 28% of all venture dollars in the quarter, underscoring AI’s continued draw for investment.
October 2024
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AI Dominance: OpenAI made headlines by closing the largest VC round of all time, reinforcing AI’s status as a leading sector for investment.
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Funding Insights: The venture capital market saw mixed signals with $19 billion invested in AI, but overall funding was still below expectations.
November 2024
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Modest Growth: Venture capital funding grew modestly with AI and mobility sectors leading the charge, contributing to a 2% quarter-over-quarter growth globally.
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Corporate Caution: Corporate venture capital (CVC) deal counts dipped, showing a cautious approach from corporate investors amid uncertain times.
December 2024
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Year-End Reflections: The year concluded with reflections on venture capital trends, with AI, fintech, and cleantech highlighted as sectors that captured significant attention. Despite challenges, there were signs of a thaw in the VC winter, with some sectors and regions showing recovery signs.
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Indian Market: India’s venture capital scene was notably robust, with investments reaching $16.77 billion, marking a 14.1% growth from the previous year.
This overview encapsulates the venture capital landscape of 2024, marked by cautious optimism, a continued emphasis on AI, and a gradual recovery from the previous years’ market corrections.
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